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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Comptoir Group plc (LON:COM).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Comptoir Group
The Last 12 Months Of Insider Transactions At Comptoir Group
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Chaker Hanna for UK£475k worth of shares, at about UK£0.10 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.14), we still think insider buying is a positive. But because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders bought 5.0m shares for a total of UK£500k. Comptoir Group may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Comptoir Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Comptoir Group Insiders Bought Stock Recently
Over the last quarter, Comptoir Group insiders have spent a meaningful amount on shares. In total, insiders bought UK£500k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Comptoir Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Comptoir Group insiders own 70% of the company, worth about UK£12m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.